Venues Are Battling Netflix - And Losing - At Least for Now

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Brent Franson is the CEO of the Euclid Analytics, a retail analytics and omni-channel engagement company located in San Francisco. Six years old, Euclid has raised $47.5M from Benchmark Capital, NEA, Harrison Metal and others. Brent is a serial entrepreneur who has been founding and running technology businesses since high school.

Brent Franson, CEO, Euclid, shares insights on the recent findings from Euclid’s survey that talks about how venues, arenas and stadiums are competing for consumers who are more excited by Netflix and DoorDash than a big night out.

There is a word for having an abundance of options: fortunate.

Consumers are indeed fortunate - for the modern world is now filled with entertainment options that are plentiful, diverse, high quality, and increasingly accessible and convenient.

Retailers are all too aware that this now-endless menu of enjoyment means shopping isn’t the exciting activity it once was. Now, new research from Euclid reveals that venues, arenas and stadiums are up against the same issue: competing for consumers who are more excited by Netflix and DoorDash than a big night out.

So, what can event spaces do to close the gap? Respondents gave us some clear perspective.

Understand the struggle is real. Venues and arenas may have already noticed declining numbers - or heavier investments to produce a similar crowd to years past. But how bad is it? Just like declining interest in shopping, only 11 percent of respondents overall are motivated to see concerts or sporting events as a regular occurrence. 76% of people just want to relax when they have downtime - and 68 percent prioritize spending time with family and friends. 66% of Millennials - the must-win demographic in terms of sheer size and purchasing power - say physical activities and binge-watching TV and movies are their habits of choice.

There’s still hope. Despite the gloom and doom, consumers want to attend games, shows, concerts and other events - and they do (just not at the frequency these venues would prefer). 86 percent had attended a concert or sporting event in the last three months and more than 50 percent had spent as much as three hours there.

Make it easy. Consumers regularly engage in a brutal cost-benefit analysis and the cost - in terms of convenience, budget, and effort - does not typically outweigh the benefit of attendance. 43 percent of people said getting to the event in question was too inconvenient - and 36 percent of all people would rather watch the event at home.

This is a huge uphill hurdle for venues and arenas. They must do a much better job of making ticket purchases simple and fast, easing the universally painful parking situation, eliminating lines, and helping people get quickly to their seats. All of that is table stakes, what's necessary to stay remotely competitive.

Tailor to their preferences, not your own. As venues and event spaces start to target Millennials and Generation Z, they should recognize that collectively, the demographic doesn’t view the event as the only draw. Here’s what needs to happen:

Make events very socially shareable. 15 percent of attendees spend most of their time sharing their experience over social media. That’s free, authentic and highly credible marketing for you. Integrate backdrops and activities that are fun and visually unique.

Build in opportunities to connect.Personal connections with a flavor of exclusivity - perks not everyone gets - are powerful drivers. 21 percent want access to exclusive suites and lounges, double the number of Gen X and Boomer fans who feel the same. Consider ways to offer face time with influencers, athletes, performers, etc.

Offer top-notch consumables. 20 percent like exploring the food options - so make sure your food and beverages are top notch.

Facilitate access. For younger, mobile-first generations, online access is a utility, like turning on a faucet and expecting the water to run. 26 percent of these event-goers rank Wi-Fi access as a must-have - so offer a reliable option.

Ensure your app is useful and a joy to use. 65% want to purchase concessions and merchandise via an app, and 67 percent would like a venue map they can use. A well-designed, easy-to-use app could help bring in more revenue.

Post-event communication must be valuable…to the consumer. 51% of respondents were open to communications from a venue or event space after an event - but only if discounts and promotions were involved. Another 28 percent saw value in exclusive deals and discounts for nearby bars and restaurants, suggesting that cross-promotional opportunities are a possibility to keep those consumer connections warm.

Venues, arenas and other event spaces will improve when they mitigate or otherwise remove friction that reinforces a consumer’s inclination to simply stay home. But they will succeed when they start actively tailoring experiences toward consumers, with an emphasis on integrating the elements most appealing to Millennial and Gen Z event-goers.